Staking
Staking is the primary value accrual mechanism in SLOHM. When you stake SLOHM, you receive sSLOHM and earn rebase rewards.
How It Works
- Deposit SLOHM → Receive sSLOHM at 1:1 ratio
- Every epoch (~144 blocks / ~1 day) → Protocol distributes rewards
- Your sSLOHM balance grows automatically through rebasing
- Unstake anytime → Convert sSLOHM back to SLOHM
The Rebasing Mechanism
sSLOHM uses an index-based rebasing system:
balanceOf(user) = userCredits × globalIndex / 1e18
When a rebase occurs:
newIndex = oldIndex × (1 + rewardYield)
rewardYield = epochRewards / totalStaked
Your credit amount stays the same, but the index increases, making your effective balance larger.
Key Parameters
| Parameter | Value | Description |
|---|---|---|
| Epoch Length | 144 blocks | ~1 day on Bitcoin |
| Target APY | 1000-2000% | During bootstrap phase |
| Warmup | None | Rewards start immediately |
APY Calculation
APY = (1 + rewardYield)^365 - 1
With a 1% daily rebase:
APY = (1.01)^365 - 1 ≈ 3,678%
Example
Starting with 100 SLOHM at index 1.0:
| Day | Index | Your Balance |
|---|---|---|
| 0 | 1.00 | 100 sSLOHM |
| 30 | 1.35 | 135 sSLOHM |
| 90 | 2.46 | 246 sSLOHM |
| 180 | 6.05 | 605 sSLOHM |
| 365 | 36.78 | 3,678 sSLOHM |
Assumes 1% daily rebase
Why Stake?
Compound Growth
Rebasing compounds automatically. You don't need to claim and restake.
Price Protection
As a staker, you earn tokens even if price drops. If price falls 10% but your tokens increase 15%, you're still ahead.
Protocol Alignment
Stakers benefit when the protocol succeeds. Treasury growth leads to higher backing and sustainable rewards.
How to Stake
- Acquire SLOHM on a DEX
- Navigate to the Stake page
- Enter amount and approve
- Confirm stake transaction
- Watch your balance grow each epoch